Staff Writer: Khaleej Times

January 23, 2024

Indian property investors surpassed Russians to claim the top position as the leading buyers of real estate in Dubai in 2023, according to latest data released by Betterhomes.

The statistics reveal that the British and Russian buyers secured the second and third positions, respectively. This marks a shift from the 2022 scenario, where Russians, British, and Indians held the top three spots in the local property market.

Dubai witnessed unprecedented demand in 2022 and 2023, pushing prices to record last year for both villas and apartments, driven by high net-worth individuals and an increase in the population of expatriate workers in the emirate.

In addition, high capital and rental returns have also attracted foreign investors, pumping billions of dirhams into the real estate market last year.

“Dubai’s real estate market continued to draw global attention, offering attractive returns to investors, security, a great lifestyle, tax efficiency, and a business-friendly environment for its expatriate population. Dubai experienced a substantial population increase, surpassing 100,000 new residents in 2023, emphasising the city’s sustained growth and enduring appeal,” said Richard Waind, CEO, Betterhomes.

In 2023, Dubai’s key communities experienced a widespread increase in the average sales price of villas, ranging from 15 to 30 per cent. A shortage of available inventory led to substantial increases in popular expat communities such as Arabian Ranches (up 25 per cent), Dubai Hills Estate (up 29 per cent), and Jumeirah Village Triangle (up 29 per cent). Two noteworthy exceptions were Palm Jumeirah, where the average price of frond villas surged by 74 per cent, and Jumeirah Golf Estates, where the average sales price saw a marginal decrease of 1 per cent.

Apartment prices also rose, with a widespread increase in the average sales price of 8-20 per cent in key communities across Dubai. In particular, Downtown Dubai (up 17 per cent), Dubai Hills Estate (up 21 per cent) and Jumeirah Golf Estates (up 21 per cent) performed strongly.

The brokerage house said there was a significant increase in buyers from Egypt, Lebanon, Pakistan and Turkey, indicating Dubai’s continued role as a global haven for geopolitical and economic stability.

Among the other top 10 investors, Egyptians came 4th, followed by Lebanese, Italians, Pakistanis, Emiratis, France and Turkish.

Interestingly, the annual study released by India Sotheby’s International Realty revealed that Dubai is the top destination for Indian investors when investing in the overseas property market, followed by the US.